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Singapore's Electricity Market

Overview of Singapore's Electricity Market

The Singapore electricity market consists of the wholesale electricity market and the retail electricity market.

The Wholesale Electricity Market

Generation companies have to bid to sell electricity in the wholesale electricity market every half-hour. Depending on electricity demand and supply, the price of electricity in the wholesale electricity market changes every half-hour.

Electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers.

The Retail Electricity Market

Eligible consumers can choose to buy from a retailer of their choice, or the wholesale electricity market at half-hourly prices. Those who exercise this choice are termed as contestable consumers. Those currently eligible to switch are business consumers, with an average monthly consumption of at least 2,000kWh (equivalent to a monthly electricity bill of at least $400). To find out if find out if you are eligible, click here.

Currently, non-eligible consumers buy electricity from SP Services (a member of SP Group) at the regulated tariff. This will change when the Open Electricity Market is launched in the second half of 2018. Households and small businesses will have the option to choose who they wish to buy electricity from. To find out more about Open Electricity Market, click here.

Stakeholders in
the electricity market

The key stakeholders in the electricity market include the following:

Energy Market Authority (EMA)

The Energy Market Authority is the government agency that oversees Singapore’s electricity and gas sectors. EMA’s main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore.

Generation Companies

Generation companies compete to generate and sell electricity in the wholesale electricity market every half-hour.

Energy Market Company (EMC)

The Energy Market Company operates and administers the wholesale electricity market.

Electricity Retailers

Electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers.

SP Services (SPS)

SP Services, a member of SP Group, is the Market Support Services Licensee (MSSL). It provides services such as the reading of electricity meters, management of meter data and facilitation of access to the wholesale electricity market.

SP PowerAssets (SPPA) and SP PowerGrid (SPPG)

SP PowerAssets is the Transmission Licensee. It owns the power grid which delivers electricity island-wide. SP PowerGrid is the agent appointed by SP PowerAssets to build and maintain the power grid. Both SPPA and SPPG are members of SP Group.

How Electricity is Generated and Delivered in Singapore

Today, about 95% of Singapore’s electricity is produced from natural gas. Natural gas is used as fuel to produce electricity in power plants run by generation companies.

Electricity generated is delivered to consumers through the national power grid, operated by SP Group (via its member SP PowerGrid). Electricity retailers and SP Group (via its member SP Services) buy electricity in bulk from the wholesale electricity market to supply to consumers.

If consumers choose to buy from an electricity retailer, their electricity supply will remain reliable and stable as SP Group will continue to operate the national power grid and deliver electricity to consumers.